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Monday, October 10, 2011

Xstrata to buy metallurgical coal deposit from Cline Mining

Monday, 10 Oct 2011

The Canadian Press reported that Xstrata Coal has agreed to pay CAD 40 million to Cline Mining Corp to acquire 100% of a metallurgical coal deposit within the Lossan property in north eastern British Columbia.

The deposit has an estimated 240 million tonnes of metallurgical coal. The Lossan deposit covers about 3,800 hectares in the Peace River coalfield.

The deal is expected to close October 12.

Mr Ken Bates president and CEO said in a statement “The sale of the Lossan metallurgical deposit provides Cline Mining with immediately available funds to ensure efficient ramp up and expansion of its New Elk metallurgical coal mine. It also provides the ability to avail itself of other strategic opportunities.”

(Sourced from The Canadian Press)

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